Financial Sources for Aquaculture

April 1991
Prepared by: Eileen M. McVey
NAL Call No.: aSH135.M

Aquaculture Information Center
National Agricultural Library
10301 Baltimore Blvd.
Beltsville, MD 1991

Preface

Aquaculture production is increasingly being identified as a means of primary and supplemental income. Aquaculture can be a small business or a large industrial enterprise. This publication is directed at the farmer who is looking for a source of income through use of marginal agricultural lands, existing ponds, or vacant buildings; the potential aquaculturist who may be looking for a new enterprise; or the current aquaculturist who is considering expanding his/her operation. The majority of financing for any new, independent, business venture will be from the owner's personal assets and private loans prior to contacting outside sources. Information on sources of funding for community groups, educational institutions, and other non-profit entities interested in aquaculture projects is also provided in this publication. Sources covered are Federal and State loan programs, Federal research granting agencies, private granting agencies, and private loan institutions. The aquaculturist may be required to provide a business plan and/or written proposal to these groups to obtain funding. Also discussed are those sources that provide consultation services. At the end of the text are a Directory of Government Sources, a Directory of Selected Private Sources of Information and Financing, a Directory of Selected Foundations, and a Selected Bibliography. The directories provide readers with initial addresses for contact as they begin their search for assistance. The bibliography provides avenues for further research.

Acknowledgments

The Aquaculture Information Center wishes to thank Meryl Broussard (Cooperative State Research Service), Joyce Thompson (Economic Development Administration), Christine Quinn (Farm Credit Administration), Penny R. Lott (Farmers Home Administration), James McVey (National Sea Grant College Program), and Tom Peniston from the Small Business Administration for review of text related to their agencies. The Aquaculture Information Center also wishes to thank Brad Powers (Maryland Department of Agriculture) and Louise Reynells (Rural Information Center, National Agricultural Library) for their time in reviewing and commenting on the overall publication.

THE AQUACULTURE BUSINESS PLAN

Starting a new aquaculture venture or expanding an ongoing aquaculture business is exciting and stimulating. Maintain and preserve that excitement and high energy! You will need it. Your search for financial assistance may take many months. Before approaching any private, State, or Federal agency for financial assistance, the potential or present aquaculturist must develop a concise business plan. This will give him/her credibility with the financial institution and, more importantly, will give direction and organization to the aquaculturist's enterprise which should lead to greater chances of success (Rhodes). The writing of a business plan will clarify for the aquaculturist his/her knowledge of the business and dedication to the enterprise. The business plan may bring to light unanticipated problems as well as unidentified resources. The U.S. Small Business Administration produces a booklet titled "Checklist for Going Into Business"(MP 12) which is a useful guide for preparing a small business plan. (See "Directory of Business Development Publications" in the Directory of Government Sources at the back of this publication.) How to Create a Winning Business Plan by James W. Taylor (See Selected Bibliography) is also a useful manual. You can find many other books on small business planning in your local library or book store.

Aquaculture enterprises are usually site and climate sensitive. The potential culturist must analyze carefully the selected site. Although the culturist can artificially alter climate parameters with indoor culture, this can be expensive. The potential aquaculturist must have a fair understanding of extensive, semi-intensive, and intensive culture systems in use in the United States and the advantages, disadvantages, and appropriateness of each for the enterprise. Whether indoor or outdoor culture is being considered, available water must be analyzed, species suitability must be considered, and State and regional legislative and permit requirements must be understood. These issues should be discussed with the State Aquaculture Extension Specialist and State Department of Agriculture or State Department of Natural Resources offices before beginning the business plan.

Next, the aquaculturist must research the potential market. Who is most likely to buy the cultured product? What is the size of this market? What are the buying public's preferences? What does your product have that gives it an edge over other similar available products (size, color, flavor, etc.)? What are disadvantages your product has with your competitor's product (transportation costs, recognizability, etc.)? Can financing assist in overcoming these disadvantages? Market surveys are one means of identifying a target or specialized market. Your State Department of Agriculture or State Department of Natural Resources may be able to put you in contact with an economic office that provides demographic information for your selected market area. Some States compile extensive profiles of demographic data through the census. In your business plan, define in specific terms your distribution strategy and your plan for overcoming unexpected product loss (an important consideration when transporting live and perishable products such as seafood).

Finally, outline in specific terms your business' financial statement. What is needed in terms of labor, equipment, land, utilities, stock, suppliers, and transportation. Your budget sheet should include 1) gross receipts from sales; 2) variable costs [stock, feed, chemicals, labor, equipment maintenance and repair, and interest payments on operating capital]; 3) income above variable costs; 4) fixed costs [general overhead, mortgage interest, and depreciation on equipment and buildings]; and 5) net return (Chaston, 1984). Aquaculture is very capital-intensive, and one way to overcome limited resources is to consider leasing assets for the business rather than purchasing them. Contact your State Aquaculture Extension Specialist for more information on creating financial statements.

Once you have written your business plan to use in approaching the financial institution, put a copy safely away for a later review of your progress in implementing the plan.

Develop a clear calendar of events which accommodates the selected climate for the growth to market of the selected species.

Careful research on all of these areas should provide information for a comprehensive business plan and financial statement. Include information on the weaknesses and risks of the business to assure potential investors that you have a complete understanding of the enterprise.

Before approaching a loan or grant officer, know how much financing is needed, how large a payment can be carried monthly, and what can be provided for collateral. If you are approaching a commercial loan officer, the lender will be interested in your management capabilities and your credit history. Put this in writing along with your written business plan. If possible, determine what type of loan you will need: a term loan for durable items, a mortgage loan for real estate, a line of credit to borrow against as you need, or an operating loan for working capital (Johnston). In a new enterprise a year may be required to obtain the necessary Federal, State and local permits. Another 6 months can be spent in construction. Therefore, lenders are often concerned about the relatively long period necessary for the business to recapture its investment and worried about risks in a new field. Be aware that financing is usually more attainable if you have completed two crop cycles.

FINANCIAL PROGRAMS

There are direct and indirect financial assistance programs at the Federal and State levels for aquaculturists. All of these programs encourage technological progress and participation of minority and disadvantaged firms, but some agencies focus on Federal or State research and development needs while other programs focus on private sector commercialization over broader areas. These programs are limited in funding and availability.

A. FEDERAL FUNDING PROGRAMS

    1. Farmers Home Administration

The Farmers Home Administration (FmHA) under the U.S. Department of Agriculture provides loans to aquaculture operators as well as farmers, ranchers, rural residents, and communities. Some loans are for individuals and their families. Other loans are made to partnerships, cooperatives, corporations, or public bodies. Loans may be used for husbandry of aquatic organisms including feeding, tending, harvesting, and any other necessary activities to promote and establish an aquaculture business. Aquaculturists are encouraged to make use of commercial sources of credit when able to do so. FmHA will then consider supplementing those financial resources with loans.

Farmers Home Administration loans are of two types. Guaranteed Loans are made and serviced by a private lender with FmHA guaranteeing to limit any loss to a specified percentage. Interest rates are determined by the borrower and lender unless established by law. Insured Loans are sold to investors through the Federal Financing Bank and are insured by the Federal Government with interest rates usually determined by current cost of Federal borrowing.

Eligibility

Individuals, corporations, cooperatives, and partnerships that will conduct family-size farming or ranching operations may apply. To be eligible, an individual must generally:
            1) be a citizen of the United States;
            2) be unable to obtain sufficient credit elsewhere at reasonable rates and terms;
            3) have the ability to repay the loan;
            4) possess the legal capacity to incur the obligations of the loan;
            5) be an owner or tenant operating a family farm after the loan has closed;
            6) need to rely on farm income and any other income to provide a level of living comparable to that considered reasonably adequate for the area; and
            7) have a satisfactory history of meeting credit obligations, have farm experience or training, and possess the managerial ability to carry out the operation.

Amounts of loans range from $500 to $500,000 with an average loan amount of $48,000. Guarantees are made for up to 90 per cent of the loan amount from the private lender in the area.

FmHa Loan Programs:

Business And Industrial Loans (B&I) are used to promote business development in cities and towns under 50,000 in population with preference being given to more rural communities. B&I Loans can be made for conservation, development, and utilization of water for aquaculture purposes. Conservation includes enhancement of public owned and regulated fish stocks. For B&I Loans, aquaculture means the culture or husbandry of aquatic animals or plants by private industry for commercial purposes including growing fish to create or augment public owned and regulated fish stocks.

Emergency Loans (EM) are insured loans to finance repair, restore, or replace damaged or destroyed farm property resulting from natural disasters and to pay necessary operating expenses to return farming operations to financially sound conditions. Interest rate is fixed and can be obtained by contacting the agency.

Farm Ownership Loans (FO) are granted for the purchase and development of real estate and water resources to help applicants become owner-operators of family farms.

Operating Loans (OL) are made for refinancing equipment, fish stocks, family living and operating expenses, and small land/water improvements.

Resource Conservation and Development Loans (RC&D) can be made for the conservation, development and utilization of water for aquaculture purposes. RC&D Loans are made to public agencies and nonprofit corporations in areas that have been designated by the Secretary of Agriculture for resource conservation and development projects.

Soil and Water Loans (SW) are made for land and water development, forestation, drainage, irrigation, and related adjustments.

Applications for aquaculture loans are filed in the FmHA county office servicing the area in which the operation is carried out. Persons who are unable to locate the local FmHA office may request the information from the Farmers Home Administration (See Directory of Government Sources).

    2. Small Business Administration

The United States Small Business Administration (SBA) is an agency created by Congress in 1953 to provide assistance for small businesses. The SBA provides loans through its Business Loan Program. The applicant is required to seek assistance from a bank or lending institution prior to applying to the Small Business Administration. Loans are granted only to businesses operated for profit. SBA generally requires that owners provide one-third to one-half of the total assets needed to launch a new business.

Length of maturity of SBA working capital loans varies from 5 to 7 years. Financing fixed assets and major renovation of business requires a long-term loan and maximum maturity is 25 years. Currently, interest rates for loans are negotiated within SBA maximums, and loans with maturities 7 years or longer cannot exceed 2.75 per cent over the prime rate while shorter term loans cannot exceed 2.25 per cent over prime.

SBA offers two basic types of loans, Guaranteed Loans and Direct Loans. Guaranteed Loans provide initial financing primarily from private lenders with the loan being guaranteed by the SBA. Guaranteed Loans, at the time of this writing, carry a maximum guarantee of 90 per cent for loans exceeding $155,000 and a maximum guarantee of 85 per cent for larger loans up to $750,000. The small business submits the loan application to the lender who makes the initial review and, if approved, forwards the application with analysis to the local SBA office. If approved by the SBA, the lender closes the loan and disburses the funds.

Eligibility For Guaranteed Loans

By law, applicants must seek financing from a bank or other lending institution before using SBA assistance. Loans are made available to eligible small businesses with the required minimum size based on sales volume or employee size depending on the type of business. Contact your local SBA office for specifics on size standards.

Direct Loans are the second type of loan. These loans have a maximum of $150,000 and are available only to applicants unable to secure an SBA Guaranteed Loan.

Eligibility For Direct Loans

These loans are limited in funding and available to certain types of borrowers such as businesses located in high- unemployment areas or businesses owned by low-income individuals, handicapped individuals, Vietnam-era veterans, or disabled veterans.

SBA Special Loan Programs:

SBA Special Loans include the Export Revolving Line of Credit Guarantees, Handicapped Assistance Loans, Local Development Company Loans, Pollution Control Financing, Seasonal Line of Credit Guarantees, and Small General Contractor Loans.

SBA 504 Program provides long-term financing to small business concerns by combining the resources of the SBA, a Certified Development Company, and/or private financiers. The Certified Development Company usually assists with the loan application and may assist with finding private sector lending. Interest rates are based on current market rates for U.S. Treasury issues. The SBA will loan $750,000 (up to $1 million) or 40 per cent of the loan. Loans are for funding machinery and equipment acquisition for 10 years and real estate purchase for 20 years. The 504 Program is not for debt payment or working capital.

Small Business Investment Companies (SBIC's) are licensed, regulated, and provided with financial assistance by SBA to make available equity capital and unsecured loans for "venture" or "risk" investments. Contact the SBA office in your area for information. Interest rates may be high and similar to venture capital investments in that the SBIC takes up to 49 per cent ownership. SBIC programs may be listed in your State under titles such as "Bureau of Business Assistance." Contact the National Association of Small Business Investment Companies (NASBIC) for more information or for a publication titled Directory of Operating Small Business Investment Companies. (See Directory of Selected Private Sources of Information and Financing for address.)

Procurement Assistance Programs under the SBA assist small businesses in obtaining government contracts.

    3. Cooperative State Research Service

The Cooperative State Research Service (CSRS) under the U.S. Department of Agriculture (USDA) works with the State Agricultural Experiment Stations, the forestry schools, the 1890 land-grant colleges, Tuskegee Institute, and colleges of veterinary medicine. CSRS allocates formula funds to States for maintaining high-quality research programs in aquaculture. CSRS awards grants in aquaculture on a competitive basis through the Aquaculture Special Grant Program and the National Research Initiative (NRI) (formerly the Competitive Grants Office). CSRS also adminsters Special Grants in aquaculture on research problems that Congress believes are important to the Nation. In cooperation with Extension Service, CSRS provides funding for research and extension activities that are administered through the five USDA Regional Aquaculture Centers.

Eligibility

For information on eligibility for the Aquaculture Special Grants Program and the NRI, the scientist should request the solicitation announcements for these programs from: Proposal Services Branch, Awards Management Division, CSRS, U.S. Department of Agriculture, Rm. 303, Aerospace Building, Washington, DC 20250-2200.

For information on the Regional Aquaculture Center programs, researchers should contact the specific Regional Aquaculture Center for their current list of research priorities and operational guidelines.

    4. Economic Development Administration

The Economic Development Administration (EDA) under the Department of Commerce provides grants and loans to alleviate conditions of substantial and persistent unemployment and underemployment in economically distressed areas and regions of the Nation. EDA is particularly interested in projects located in federally authorized and designated enterprise zones.

To establish merits of project proposals, interested parties should first contact the economic development representative for the area (See Directory of Government Sources).

EDA also administers a program of Guaranteed Loans. Authority is available to guarantee up to 80 percent of the principal and interest made by eligible commercial lending institutions to private borrowers for the purchase of fixed assets and/or for working capital purposes for projects located in areas eligible for EDA assistance. Applicants should contact either the Austin or Philadelphia Regional Office Business Loans Division to discuss their proposals. Applications will be accepted only from private lending institutions.

Other programs under EDA are the Technical Assistance Program; University Center Projects; Planning Assistance for Economic Development Districts, Indian Tribes, and Redevelopment Areas; Planning Assistance for States and Urban Areas; Research and Evaluation Projects; Economic Adjustment Assistance; and Trade Adjustment Assistance. Please contact the EDA regional office in your area for further information on these funding programs. (See Directory of Government Sources).

    5. Federal-State Marketing Improvement Programs

This program under the U. S. Department of Agriculture, Agricultural Marketing Service, is a matching fund program exclusively available, on a competitive basis, through the State Departments of Agriculture or other State agencies. Projects must support marketing services that improve the marketability of agricultural products, expand export markets, and improve the efficiency in marketing through pilot projects. Funding is not directly available to individual aquaculturists, however, respective State Departments of Agriculture or State agencies may deem a project viable and apply directly to FSMIP for possible funding.

    6. National Sea Grant College Program

The National Sea Grant College Program under the Department of Commerce, National Oceanic and Atmospheric Administration (NOAA), provides grant funding through a core of 29 Sea Grant colleges and institutions which in turn network with over 200 participating universities and research institutes. Approximately 10 per cent of Sea Grant funding has been allocated to aquaculture projects in the past. Funding is most often allocated to the research branch of the institution, but a private aquaculturist may submit a proposal requesting funds to research a specific problem through his or her local Sea Grant college or university. These grants are awarded based on competitive proposals subject to vigorous review. The proposal must follow very specific guidelines. Grants are not provided for startup enterprises or expansion of ongoing aquaculture business.

Eligibility

Universities, colleges, technical schools, institutes, laboratories, public or private corporations, partnerships, individuals, and State or political subdivisions are eligible to apply. Grant money cannot be used for purchase of facilities.

Grants range in size from $5,000 to $150,000 with the average grant size at $31,000 or $57,000 with matching funds. One- third of the funds must be matched. Aquaculturists with a research project should contact their local Sea Grant college or university.

    7. Small Business Innovation Research

Small Business Innovation Research (SBIR) provides grants that are seed capital directly from Federal agencies based on research that they are willing to fund. Federal legislation gives the Small Business Administration the responsibility for issuing the directives for conducting the general program. SBIR program goals are to 1) stimulate technological innovation; 2) use small businesses to meet Federal research and development needs; 3) increase private sector commercialization of innovations derived from Federal research and development; and 4) foster and encourage participation by minority and disadvantaged persons in technological innovation.

Twelve agencies have SBIR programs. These are the U.S. Departments of Agriculture, Commerce, Defense, Education, Energy, Health and Human Services, Interior, Transportation, and the Environmental Protection Agency, the National Aeronautics and Space Administration, the National Science Foundation, and the Nuclear Regulatory Commission. Administration of the program is shared between the Small Business Administration and the participating research agency. Aquaculturists with a research project should contact the Department of Agriculture, the National Science Foundation, or the Department of Commerce branches of the SBIR program.

Agencies are required to evaluate and fund SBIR proposals using a three-phase process. Phase I provides funds for testing the proposal's scientific and technical merit and practicality usually covering a 6-month time period. Phase II provides funding for further development of those projects that were highly rated and covers activities for 1 to 2 years more. Phase III provides funding for commercial application of the research.

Eligibility

The business must be independently owned and operated and cannot be a dominant firm in the field in which they are proposing to carry out the SBIR project. In addition, the business must be organized and operated for profit, must employ 500 or fewer employees, and must be the primary source of employment for the project's principal investigator at the time of the award and during the research. The business must be at least 51 per cent owned by U.S. citizens or lawfully admitted permanent resident aliens.

SBIR legislation requires that each agency allocate at least 1.25 per cent of its external research and development obligations for SBIR projects when the total external obligations exceed $100 million.

Due to the differences in research budgets within the various agencies, the SBIR obligations also vary in size. Historically the Department of Defense has funded 55 per cent of the total programs. Most Phase I grants are for $50,000 or less, Phase II grants are for no more than $500,000. Phase III projects have not as yet been funded.

B. STATE FUNDING PROGRAMS 

In addition to the above Federal programs that are usually administered at the State level, States may have their own local development programs with tax incentives for aquaculture investment.

State economic development programs vary in their structure and responsibility. State staff may have expertise in areas of financing, advertising, tax applications, business management, and exporting. While some States are now including an emphasis on aquaculture in their economic development program, the industry is still not well known in other States.

Financial incentives at the State level may include direct loans, loan guarantees, development bonds, grants, and State supported venture capital programs. Maximum loan amounts at the State level are generally less than $1 million. Grants are very rare and usually require ability to provide supplemental financial support. The research should have an emphasis on technology transfer applications and defined benefit to the community. States may also provide assistance in the form of tax credits, tax abatements, tax exemptions, and tax deductions. State programs using lottery funds, environmental issues, and minority support programs may all have an application for aquaculture. Oregon Resource and Technology Development Corporation is one entity that decides which companies receive lottory funds for seed capital (Wilkerson). Funding may depend on how carefully the goals of the funding request or proposal are defined.

Aquaculturists should contact their State office for information on the programs available to them through their State. The name of the contacting office varies by State but may be listed as: State Economic Development Office, State Department of Commerce, Bureau of Business Assistance, or Office of Urban Programs. Contact your State Department of Agriculture or State Department of Natural Resources for the appropriate office in your State. County-level economic development programs may also be available.

C. OTHER FUNDING SOURCES 

    1. Commercial Banks and Loan Offices

The largest number of business loans are provided by commercial banks (Rhodes). Commercial loan institutions are interested in businesses that can provide 2-5 years budget history and a comprehensively written business plan. The lending institution will require substantial collateral. Short-term bank loans can be used for increased inventory or purchase of brood stock with a view to repayment of the loan within a year or less (may expand 2 to 3 years)(Ford) . Term money allows the borrower to pay back the loan over a longer period of time (Rhodes). Most term loans providing 80 per cent to 90 per cent of total costs are written for 5 years or the useful life of the asset and may have a refinancing clause (Ford). Most lenders require the aquaculturist to co-sign the loan or provide a third party to guarantee repayment. Capital improvements may have little resale value; therefore, the bank may provide credit for only a small portion of the cost of improvements. Determine if a particular loan officer has experience with aquaculture businesses. If a bank or a particular person in a bank has a successful track record with aquaculturists in your area, the task of securing the loan will be easier.

Individuals should provide in the loan application: personal information (address, birth date, marital status); financial statement of net worth; evidence of having a steady job; personal income information; personal resume and references (Johnston).

    2. Cooperatives

Formation of cooperatives (joining of financial resources with other similar businesses) is one way to take control of the direction of regional aquaculture industry growth. Funneling marketing efforts through cooperative groups of small farms concentrates selling power.

CoBank--National Bank for Cooperatives is one of the largest cooperative financial institutions. Ten district Banks for Cooperatives located across the Nation were merged with the Central Bank for Cooperatives in January of 1989. CoBank offers financial services to agricultural cooperatives and finances agricultural exports and provides international banking for the benefit of U.S. farmer-owned cooperatives. The national office or National Bank for Cooperatives is located in Denver, Colorado (See Directory of Selected Private Sources of Information and Financing).

Eligibility:

CoBank provides financing to agricultural cooperatives that transact at least 50 per cent of their business with or for their members; 80 per cent of the voting stock is held by the member agriculturists with one vote per member; and operations are cooperative regarding member control and distribution of earnings. Under certain conditions, CoBank may lend to joint ventures, subsidiaries, and partnerships of eligible customers.

Lending programs are for short-, intermediate-, and long-term financing at variable and fixed rates of interest. Also under the Farm Credit System is a nationwide network of farmer-owned lending institutions. In 1988 Farm Credit Banks (FCBs) resulted from the merger of the Federal Land Bank and Federal Intermediate Credit Bank in each of 11 districts. Funds, supervision, and support services are provided to 95 Federal Land Bank Associations (FLBAs), 82 Production Credit Associations (PCAs), 66 Agricultural Credit Associations (ACAs) and 19 Federal Land Credit Associations (FLCAs) for a total of 262 locally owned farm credit associations. The aquaculturist should contact his or her County Extension Specialist for information on the above financial institutions.

Farm Credit Banks make long-term loans to farmers and ranchers for land and other purchases through the FLBAs. Production Credit Associations make short- and intermediate-term loans to farmers and ranchers. Agricultural Credit Associations offer a full range of short-, intermediate-, and long-term loans. Loans can be made to aquaculturalists who operate in open waters or under controlled conditions for the purchase or repair of fishing vessels, for the construction or repair of shore facilities, or for marketing and processing facilities. Requests for general information should be directed to the contact at the district level or through the Farm Credit Council (See Directory of Selected Private Sources of Information and Financing).

    3. Venture Capital

Venture capital is financing available through a group of private investors. Venture capital is usually available for high technology/larger scale operations. In most cases aquaculture is considered too high risk and venture firms are unwilling to invest in companies in the startup stages (Case). Venture capitalists frequently require 49 per cent or greater equity interest in the operation and require the issue to be preferred equity or preferred stock with priority in receiving distributions of assets if the company dissolves (Daniels). Aquaculturists who are interested in a research or technology application for their enterprise, should contact the Venture Capital Network (See Directory of Selected Private Sources of Information and Financing) for information on their national computer matching database. Capital is also available to aquaculture biotechnology operations (in North Carolina only) through the North Carolina Technological Development Authority (See Directory listed above) which provides startup funding. Other States may have technology-based development groups.

    4. Private Foundations

Many large and small foundations have funded or are funding aquaculture projects for scientific research, area economic development, minority business support, or environmental conservation and enhancement. Procedures for grant application vary. While they usually provide funding to political or academic nonprofit groups and do not fund individuals or private businesses, they may be a source of funding for aquaculture to those nonprofit groups. Your public library has publications listing philanthropic foundations.

D. CONSULTATION SERVICES

Both the State and Federal Governments have available a number of offices with knowledgeable staff who will provide assistance and advice for your business venture without charge or for a nominal fee. The USDA Extension Service, the Sea Grant Extension Service, and the Small Business Development Centers (SBIC) are all available regionally to assist the aquaculturist. The Service Corps of Retired Executives (SCORE) is a volunteer organization sponsored by the Small Business Administration which provides counseling for the prospective or current business owner. While the number of "retired aquaculture executives" in SCORE may be limited, you can get general advice on merchandising, financial management, marketing and trade. In addition many of the States have State Aquaculture Coordinators, located at their State Department of Agriculture or State Department of Natural Resources, who can provide you with information on the scope of aquaculture development and support within your State. Contact your public library or look in your phone directory for names and addresses of these offices.

In addition, the Small Business Administration produces a number of useful business development pamphlets and business development booklets sold through the Government Printing Office for a nominal fee. Request order form 115A and 115B through U.S. Small Business Administration, P. O. Box 30, Denver, CO 80201-0030 or call 800-225-5722 for these order forms.

E. DIRECTORY OF GOVERNMENT SOURCES

Regional Economic Development Offices of EDA

F. DIRECTORY OF SELECTED PRIVATE SOURCES OF INFORMATION AND FINANCING

Venture Capital Network
MIT Enterprise Forum
201 Vassar St.
Cambridge, MA. 02139
Ph: (617) 253-7163

[In addition the reader may wish to consult the current issue of the Aquaculture Magazine "Buyer's Guide and Industry Directory" for a listing of private and commercial assistance under the sections titled "Aquaculture Investment," "Feasibility Studies," "Marketing Service," and "Risk Management." Aquaculture Magazine, P.O. Box 2329, Asheville, NC. 28802 Ph: 704-254-7334]

G. DIRECTORY OF SELECTED FOUNDATIONS

[These institutions are a few of many large and small foundations that have funded or are funding aquaculture projects for scientific research, area economic development, minority business support, or environmental enhancement. Procedures for grant application vary. While they usually provide funding to political or academic nonprofit groups and do not fund individuals or private businesses, they are provided here for information.]

Belle W. Baruch Foundation
90 Park Avenue
New York, NY. 10016
Gives primarily to education and research in conservation of natural resources and marine biology through South Carolina universities.

Culpeper (Charles E.) Foundation
866 United National Plaza, Room 408
New York, NY. 10017
No grants to individuals or for conferences, operating budgets, travel, or loans.

FishAmerica Foundation
1010 Massachusetts Ave., N.W. Suite 100
Washington, DC. 20001
No grants to individuals for research, endowments, operating expenses, advertising, traveling costs, and loans.

Ford Foundation
320 East 43rd St.
New York, NY. 10017
No grants to those programs with substantial government funding, no grants for routine operating costs, construction or maintenance of buildings, or purely personal or local needs.

Kresge Foundation
P.O. Box 3151
3215 West Big Beaver Rd.
Troy, NY. 48007-3151
No grants to individuals, no grants for operating budgets, furnishings, research, or debt retirement.

Jessie Smith Noyes Foundation
16 East 34th St., New York, NY. 10016
No grants to individuals or for operating capital.

Rockefeller Foundation
1133 Avenue of the Americas
New York, NY. 10036
No grants for aid to individuals, for capital endowment funds, general support or scholarships or loans.

H. SELECTED BIBLIOGRAPHY

Anon. "Diverse farming projects get grants," Des Moines Register, v. 141(210), February 24, 1990, p. 6S.

Blakely, David R. and Christopher T. Hrusa. Inland Aquaculture Development Handbook. Fishing News Books, Ltd., Oxford, England, 1989. 184 pp. NAL CALL NO: SH159.B54

Case, John. "Venture investing: opportunities knock." Inc. v. 6, March, 1984, pp. 143-7.

Chaston, Ian. Business Management in Fisheries and Aquaculture. Fishing News Books, Ltd., Oxford, England, 1984. 128 pp. NAL CALL NO: SH328.C4

Chaston, Ian. Marketing in Fisheries and Aquaculture. Fishing News Books, Ltd., Oxford, England, 1983. 143 pp. NAL CALL NO: SH211.C46

Daniels, Walter E. "Financing Considerations for Early Stage Technology-Based, Emerging Growth Companies." B T Catalyst. North Carolina Biotechnology Center, Box 13547, Research Triangle Park, NC., September 1988, p. 4.

Davidson, Jeffry P. Avoiding the Pitfalls of Starting Your Own Business. Walker and Company, NY. 1988. NAL CALL NO:  HD62.5.D38

Dore, Ian. Fresh Seafood The Commercial Buyer's Guide. Buying, Choosing, Handling and Using Fresh Fish and Shellfish. Osprey Books, Huntington, NY, 1984. NAL CALL NO: HD9450.5.D67

Dorsch, Jennifer. "They found their markets first." Successful Farming, v. 88(6), April 1990, pp 14-16

Dumouchel, J. Robert. Government Assistance Almanac 1989-1990. The Guide to All Federal Financial and Other Domestic Programs. Omnigraphics, Incorporated, Detroit, Michigan, 1989. NAL CALL NO: HC110.P63G69 1989-90

Elnicki, Susan E. and Bohdan R. Romaniuk. America's New Foundations, Fourth Edition. The Taft Group, 12300 Twinbrook Parkway, Suite 450, Rockville, MD, 1990. NAL CALL NO: HV89.A4 1990

Fenwick, Judith, David A. Ross and Cynthia Schramm. International Marine Science Funding. Woods Hole Oceanographic Institution, Woods Hole, MA, 1990.

Ford, Joan G. INC. Magazine. Supplement, 1991

Howarth, William. The Law of Aquaculture: The Law Relating the Farming of Fish and Shellfish in Britain. Fishing News Books, Osney Mead, Oxford, England, 1990.

Jacobson, L.B. "Jake". Marine Partnerships: Their Various Forms and Legal Ramifications. Marine Advisory Bulletin No.13. University of Alaska, Sea Grant College Program, May 1982. NAL CALL NO: KFA1407.J32

Johnston, Archie. "Bank Loans: Presenting Your Case." Aquaculture Today, Summer 1989, p. 34.

Kahklen, Kieth. "For Mariculturists, Getting Funds Tough." Alaska Journal of Commerce, v. 13(14), April 3, 1989, p. 17.

Lindbergh, Jon and Karen Pryor. "Six Ways to Lose Money in Aquaculture." Aquaculture Magazine, May/June 1984, pp. 24-25. NAL CALL NO: SH1.C65

Meigs, Frank E., III. "Lending to the Aquaculture Industry." Journal of Commercial Bank Lending, v. 66, March 1984, pp. 20-8.

National Association of State Development Agencies. Directory of Incentives for Business Investment and Development in the United States. 2nd Edition New and Revised. The Urban Institute, 2100 M. Street, N.W., Washington, DC. 1986. NAL CALL NO: HD110.I53N3

Morris, Jane K. and Susan Isenstein, Eds. Pratt's Guide to Venture Capital Sources. 13th ed. Venture Economics, Needham, MA. 1989.

Rhodes, Raymond J. "Primer on Aquaculture Finances." [in four parts]
    "Planning for Success: Part I." Aquaculture Magazine, Nov./Dec. 1983, pp. 16-20.
    "Capital for Startup Ventures: Part II." Aquaculture Magazine, Jan./Feb. 1984, pp. 21-25.
    "Taxes, Time and Investors: Part III." Aquaculture Magazine, March/April 1984, pp 22-25.
    "Avoiding a Cash Crisis: Part IV." Aquaculture Magazine, May/June 1984, pp. 32-35. NAL CALL NO: SH1.C65

Stoner, Charles R. and Fred L. Fry. Strategic Planning in the Small Business. South-Western Publishing Co., Cincinnati, Ohio. 1987. NAL CALL NO: HD62.7.S85

Taylor, James W. How to Create a Winning Business Plan. Asher-Gallant Press, Westbury, NY. 1986. NAL CALL NO:  HD62.7.T38

Tiddens, Art. Aquaculture in America: The Role of Science, Government, and the Entrepreneur. Westview Press, Boulder, CO, 1990. NAL CALL NO: HD9455.T53

Watters, Michael P. and Clyde E. Herring. "Accounting Standards for Aquaculture Producers: What CPAs Think." Arkansas Business and Economic Review, v. 23(8), Summer 1990, p. 11.

Wilkerson, Jan. "Public Offering to Reel in Acquistion Funds." The Business Journal of Portland, Oregon, v. 5(30)s1, September 1988, p. 1.